Laurence Glynne, Partner of West End Specialist estate agency, LDG, said:
"As has been the case across the country, the lettings market in the West End has been particularly buoyant throughout 2010 - we have signed approximately 20% more tenancy agreements in 2010 than in 2009. We are expecting this trend to continue in 2011 as there are still a large amount of would-be buyers in the rental market.
"Because the demand for quality rental properties in the West End currently outweighs supply, rental prices have risen in 2010 - dramatically in some cases - compared to 2009. Last year, a typical two bed flat in the West End cost approximately £518 per week, and this year, the same property would cost around £577 per week, an increase of 11%.
"The West End lettings market in Soho and Covent Garden is mainly dominated by media professionals, whilst the Bloomsbury and Fitzrovia markets see high levels of student renters. 60% of our tenants are from outside the EU, with 2010 seeing an increase in Chinese and Far Eastern tenants - this could be because of the weak pound.
"This year, the number of European tenants has dropped but the number of UK tenants has increased by 10%. It is interesting that we are now seeing more Greek and Turkish renters in the West End market - possibly as they see the UK as being politically and economically stable.
"The sales market in the West End is continuing to be consistent - we saw a similar number of transactions in 2010 to the amount in 2009, but the value of those transactions has increased by 10%.
"In 2011, there are a variety of factors which will influence the West End sales market, such as the property shortage, the increase in the amounts of properties going to sealed bids, and the West End's growing appeal - we are therefore expecting the market to stay steady into 2011. It will also be interesting to see how EU bailouts affect international buyers.
"So far this year, 53% of buyers have paid cash for investment properties - this could be due to the fact that interest rates are low and so savings in the bank are not earning very much, but the potential appreciation on West End property is significant. We are taking this to be a sign of confidence in the West End market.
"In 2009, 27% of all our buyers were from outside the European Union; this figure dropped dramatically in 2010 to just 8%, with 78% coming from the UK and 13% from within the EU; this is interesting as the lettings market has seen an increase in tenants from the Far East and China.
"For 2011, we are anticipating numbers of UK, EU and international buyers to be similar to this year's as the global economy is not showing any major signals of change. Early 2011 will be an interesting time for the property market generally, with the rises in stamp duty on properties in excess of £1million in April and VAT increases coming into effect in January.
"We have seen a late surge in sales this year - possibly as people are trying to make their money go further before these increases come into effect - that said, we are not expecting the changes to have a significant effect on the West End market."
